CRA indicates that a successor trust to a testamentary spousal trust does not have filing obligations until it is created, which can be after the date of death of the testator

A testamentary spousal trust provides that, after the death of the spouse, any remaining property will be held in one or more separate trusts for the benefit of the remainder beneficiaries. Is such successor trust (assuming it is not described in ss. 150(1.2)(a) to (r)) required to file a T3 return (including a Sched. 15 providing beneficial ownership information) while the surviving spouse is alive.

CRA indicated that once the successor trust was created, it would be obligated to annually file a T3 return because s. 150(1.2) would prevent it from being able to rely on the exception to filing contained in s. 150(1.1)(b) – and it also would not be exempted from the additional Reg. 204.2(1) reporting requirements, so that a Sched. 15 would be required.

As to when the successor trust arose, CRA generally viewed trusts created out of the residue of an estate as arising on the death of the individual. However, where the terms of a will provided that, on the death of the first-generation income and capital beneficiary (in this case, the spouse), the trustee was to divide the remaining property into equal parts to be held in a new trust for the interest of each child, such a trust or trusts would be viewed as being created at a later point in time than the testator's date of death.

CRA indicated that, in light of s. 104(5.8), the 21-year deemed disposition rule in s. 104(4) would apply to the successor trust when it would have applied to the testamentary spousal trust, i.e., 21 years after the death of the surviving spouse – rather, than 21 years after the date of formation of the successor trust, assuming that that occurred a number of months later.

Neal Armstrong. Summaries of 2 June 2026 STEP Roundtable, Q.2 under s. 150(1.2) and s. 104(5.8)(a).